The product is available at two and five year fixed rates, starting at 3.19% and 3.49% respectively, and prices are the same for limited companies and individuals. Maximum loan size is £500,000, maximum term is 30 years and there is a maximum age of 75 at end of term – though there is no maximum age for limited company applicants.
Jeff Knight (pictured), marketing director, Foundation Home Loans, said: “We know that landlords with HMOs continue to achieve the highest rental yields – 1.1% above the average according to recent research by BDRC and seem to be growing in popularity. Speaking to some of our intermediary partners, they are delighted to be able to offer more choice to their clients with our new product range to help with demand.”
Last month industry experts warned councils to act with caution when imposing restrictions on the number of HMOs which can be set up in an area. Gavin Dick, local authority policy officer at the National Landlords Association said demand for HMOs was strong and if supply was restricted, rents for tenants looking for cheaper accommodation may rise.